Over the past seventy years, the American film industry has transformed from mass-producing movies to producing a limited number of massive blockbuster movies on a global scale. Hollywood film studios have moved from independent companies to divisions of media conglomerates. Theatrical attendance for American audiences has plummeted since the mid-1940s; nonetheless, American films have never been more profitable. In 1945, American films could only be viewed in theaters; now they are available in myriad forms of home viewing. Throughout, Hollywood has continued to dominate global cinema, although film and now video production reaches Americans in many other forms, from home videos to educational films.
Amid declining attendance, the Supreme Court in 1948 forced the major studios to sell off their theaters. Hollywood studios instead focused their power on distribution, limiting the supply of films and focusing on expensive productions to sell on an individual basis to theaters. Growing production costs and changing audiences caused wild fluctuations in profits, leading to an industry-wide recession in the late 1960s. The studios emerged under new corporate ownership and honed their blockbuster strategy, releasing “high concept” films widely on the heels of television marketing campaigns. New technologies such as cable and VCRs offered new windows for Hollywood movies beyond theatrical release, reducing the risks of blockbuster production. Deregulation through the 1980s and 1990s allowed for the “Big Six” media conglomerates to join film, theaters, networks, publishing, and other related media outlets under one corporate umbrella. This has expanded the scale and stability of Hollywood revenue while reducing the number and diversity of Hollywood films, as conglomerates focus on film franchises that can thrive on various digital media. Technological change has also lowered the cost of non-Hollywood films and thus encouraged a range of alternative forms of filmmaking, distribution, and exhibition.
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